Memo shows Citi penny-pinching

Well, according to published reports, management at one of the biggest U.S. banks has not only banned off-site meetings among employeesits also asked workers to cut back on the amount of photocopying they do.

According to an internal memo confirmed by a Citigroup spokesman, the bank wants presentations to be printed double-sided to reduce unnecessary paper usage. In addition, the use of certain copiers will be confined to client presentations. Over time, we will be removing color copiers and printers from the locations where they are not essential, the memo stated.

In explaining the new rules, the memo noted that managing our expenses is not only a critical aspect of our strategy, it is also an important part of our jobs. Each of us must do our part to manage our expenses by challenging every dollar we spend.

Some praised the concept. They are cyclical businesses that do get a bit fat in the good days, Antony Gifford, who oversees about $4 billion in North American equities at Henderson Global Investors, told Bloomberg. Its not material, but a worthwhile exercise for a company the size of Citigroup.

Under the new policy, worker meetings must be held at Citigroup offices, while client events will require approval. We have spent considerable time looking at our head count and related expense, and while we have made progress in that area, we still have more work to do, the memo noted.

Citi is not alone in this bout of corporate parsimony. Other banks, beset by dramatic declines in earnings, have also instituted some fairly draconian rulesat least, by banking standards.

Merrill Lynch restricted the use of private jets, the Financial Times reported last month. And Deutsche Bank reportedly requires dealmakers to get approval for taxi trips in advance. The German bank has also laid down the law on entertainment expenses: business meals reportedly cannot exceed $92 per person.

At Citigroup, management is also apparently scaling back on external training, limiting the sessions to those that are strictly necessary. And in perhaps the biggest blow of all to investment bankers, the memo says Citi will be conducting a review of BlackBerry usage. In the interim, all new BlackBerries will require pre-approval.

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